Dynamics of Wealth and Consumption: New and Improved Measures for U.S. States

Xia Zhou · Christopher D. Carroll

58 citations0/0 files storedThe B E Journal of Macroeconomics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Monetary Policy and Economic Impact Housing Market and Economics Financial Literacy, Pension, Retirement Analysis

Abstract

Case, Quigley, and Shiller (2005) persuasively argue that the well-known conceptual difficulties in measuring aggregate “wealth effects” might be lessened by the use of state-level data. Unfortunately, the data required for a convincing implementation of their idea have been either virtually nonexistent (for financial wealth) or of questionable quality (for consumption). Our main contributions are to provide the first directly observed panel data on financial wealth at the state level, and to construct improved measures of state-level spending growth. Using these data, we estimate rudimentary “wealth effects” regressions that find a strong relationship between twice-lagged housing wealth growth and current spending growth, but we find no relationship between lagged financial wealth growth and current spending growth.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 58 citations exist upstream.

References

1978Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence 2001Consumption, Aggregate Wealth, and Expected Stock Returns 1989Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence 2005Comparing Wealth Effects: The Stock Market versus the Housing Market 2006How do house prices affect consumption? Evidence from micro data 2002Agglomeration effects in Europe 1990Anomalies: Saving, Fungibility, and Mental Accounts 1996Channels of Interstate Risk Sharing: United States 1963-1990

Cited by

2013Roads to Prosperity or Bridges to Nowhere? Theory and Evidence on the Impact of Public Infrastructure Investment 2017Homeowner Borrowing and Housing Collateral: New Evidence from Expiring Price Controls 2015Temporal causality between house prices and output in the US: A bootstrap rolling-window approach 2014House Price Gains and U.S. Household Spending from 2002 to 2006 2014Forecasting aggregate retail sales: The case of South Africa

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.